Eldorado remains in the red for 2004

Vancouver – A drop in gold output coupled with escalating costs at Eldorado Gold’s (ELD-T) 100%-owned So Bento mine in Brazil contributed to a loss for 2004.

The company posted a US$14-million loss (US5 per share) for 2004 compared to a loss of US$45 million (US20 per share) in the previous year.

Eldorado’s sole-producing mine, So Bento, saw reduced 2004 gold production of 82,000 oz. at a cash cost of US$294 per oz. versus 95,000 oz. in 2003 averaging US$234 per oz. in cash costs. Increased waste handling, poor ground conditions and the encountering of a large unmineralized intrusive in the orebody all impacted mine performance. Forecast gold production for 2005 has been trimmed by about 20% to 72,000 oz. at estimated cash costs of US$320 per oz.

So Bento proven and probable reserves stand at 1.2 million tonnes grading 8.3 grams gold per tonne. Additional measured and indicated resources of about one million tonnes at 11.7 grams gold also remain in the deposit.

Substantial cost increases resulted from a $12-million, 370-metre deepening of the main So Bento shaft, which is expected to be completed by mid-2005. Development of deeper infrastructure plus an adverse change in ore mineralogy also escalated expenditures.

Eldorado is advancing development of its wholly owned Kisladag deposit in western Turkey. The project hosts proven and probable reserves of over 135-million tonnes grading 1.2 grams gold. A further measured and indicated resource of 215-million tonnes at one gram gold has been calculated. Production from the open pit mine is scheduled to commence in late-2005 with initial output of 164,000 oz. gold in year one then ramping up to 240,000 oz. annually over the 15-year mine life.

In late-2004, the company closed a $77.6-million financing primarily earmarked for Kisladag development with estimated construction costs of US$63 million. Eldorado’s year-end cash position (including short-term deposits) stood at over US$135 million.

Eldorado’s environmental impact study on its wholly owned Efemukuru gold project, also in western Turkey, is in final permitting stage. Proven and probable reserves on the deposit are 1.9-million tonnes averaging 13.1 grams gold, with additional measured and indicated resources of 1.8-million tonnes at 14.4 grams gold. Upon government approvals and successful permitting, the company anticipates production from Efemukuru by late-2007.

With 276.3-million shares outstanding, the company has a $1-billion market capitalization at its recent trading level of $3.66 per share.